Robinhood Refuses to Halt Token Trading Despite AMC Demands
Robinhood has rejected AMC Entertainment's demand to stop trading tokens tied to its stock. The theater chain had asked Robinhood to cease and desist from selling the tokens, accusing it of marketing a security that poses as AMC stock without complying with U.S. securities laws.
Ryan Gallagher, Robinhood's chief legal, compliance and corporate affairs officer, responded to AMC CEO Adam Aron on social media, saying 'Send your lawyers and we'll educate them.' He pointed out that Robinhood knows 'a little something about the U.S. securities laws.'
Tokenized stocks are blockchain-based assets that track or represent shares in publicly traded companies. They have recently grown in popularity, generating $15.1 billion in spot trading volume during the first quarter of 2026, according to CoinGecko.
Russell Klein, a Miami crypto lawyer, said clear disclosures distinguishing the tokens from shares could limit AMC's options. 'I think that if they make it clear with disclaimers and terms that it's not purporting to be the company's shares but is a derivative then they don't have any recourse other than legal threats and lobbying regulators.'